Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.2% to close under $1,470, rebounding from early-session lows after weak US manufacturing data and unease about global trade caused reversals in the dollar and equities.

The metal initially fell to under $1,460 as solid manufacturing data from data from China stoked risk appetite, boosting equities and the dollar. The Caixin private PMI showed Chinese factory activity expanding in November at the fastest pace in almost three months.

But stocks and the dollar abruptly reversed directions, lifting gold almost to flat, after ISM index of US factory activity contracted in November for the fourth month and construction spending fell unexpectedly.

Adding to late-session risk-off sentiment, President Trump threatened to renew tariffs on Argentina and Brazil, and to increase tariffs on China even more if he doesn’t get the deal he wants. For its part, China said it will not agree to the so-called "phase one " pact unless the US commits to dropping tariffs, something Washington has refused to do.

The Dow plunged to a loss of nearly 1% while the Nasdaq fell 1.1%.

The dollar fell from small gains to a loss of around 0.4% against major rivals as traders speculated that the weak US data will prompt the Fed to cut interest rates again early next year. Lower rates weaken the dollar by making it less attractive to Forex investors seeking yield. A weaker dollar, in turn, lifts gold and other commodities by making them less expensive in other currencies.

The other precious metals were mostly lower, with silver and platinum dropping 0.8% and 0.1%, respectively, while palladium rose 0.8% on supply worries.

At the Comex close: February gold slipped $3.50 to $1,469.20; March silver fell 14 cents to16.97; January platinum dipped 70 cents to $899.70; and March palladium added $14.60, to $1,824.70 an ounce.